Coke released a statement saying that the company is “closely watching” the growth of CBD, a non-psychoactive component in Marijuana, as an  ingredient in what it called functional wellness beverages.

“The space is quickly evolving” coke said “no final decisions have made at this time”.

CBD, which does not produce a high for the user, has been used for medical purposes, including releasing inflammation, pain and nausea. Coke interest was first reported when the company was in talks with Aurora Cannabis, a Canadian cannabis company. Aurora has also expressed interested in cannabis drinks.

“There is so much happening in this area right now and we think it has incredible potential,” said Aurora spokesperson Heather MacGregor. “Stories like this are further validation of the massive global potential of the cannabis industry.”

Constellation Brands (STZ), the maker of Corona beer, Svedka vodka and Casa Noble tequila, announced last month that it is investing an additional $4 billion in the Canadian cannabis company Canopy Growth (CGC).

A number of Canadian cannabis companies, corns (CRON) and Medmen Enterprises (MMNFF), now trade on US stock exchanges, and some American companies have taken stakes. Cannabis and CBD are still illegal in the United States under federal law, even though a number of states have legalized marijuana. The Prohibition against CBD is not strictly enforced. There are third-party sellers offering CBD based products on Amazon .

Coke and PepsiCo have been trying to expand their businesses beyond traditional soft drinks as people drink less soda because of health concerns. just last week coke announced  a deal to buy Custa Coffee for $5 billion.

Canada is in the process of legalizing recreational use of marijuana. The drug is still under US federal law, although some states have decrimalized it.

The US Food and Drug Administration approved the epilepsy treatment Epidiolex, the first cannabis-based drug allowed in the United States. it includes CBD as well.